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Do you think it's impossible to purchase a home? Perhaps it's not necessary to be.

Friday, November 4, 2022   /   by Laura Larson

Do you think it's impossible to purchase a home? Perhaps it's not necessary to be.

As it turns out, millennials aren't the generation that rents apartments. According to Mynd's 2022 Consumer Insights Report, some millennial and Gen Z homebuyers are pursuing homeownership as a strategy to increase their wealth, however, this may not be exactly how earlier generations did it. According to the survey, they are entering the market as follows:“. . . younger generations of Americans are not buying into that dream in the same way that older generations have. A growing number of Americans are choosing to make their first real estate purchase as an investment property.”

Some young purchasers are purchasing a home so they may use it as a rental rather than buying one and moving into it themselves. This strategy may be becoming more popular, at least in part, as a result of the difficulties with affordability brought on by today's increased mortgage rates. How many members of this group are contemplating this strategy is mentioned in the report above. It reads:“Almost half of Millennials and Gen Z (43%) are considering buying an investment property compared to only 9% of Baby Boomers and 27% of Gen X.”

Why Younger Buyers Are Purchasing a House to Rent Out
This method enables buyers to stay in their existing residences where they couldn't otherwise afford to buy, such as the busy metropolitan apartment complex or their beloved neighborhood. They decide to buy a house in a more inexpensive neighborhood with the purpose of renting it out rather than abandoning their dream of owning a home.

They are, in a sense, obtaining the best of both worlds. They still own a home where they can afford it and they live where they want.

Both passive income generation and asset diversification are priorities for them. The equity they build in their home will assist increase their net worth over time in addition to providing them with a rental income stream.

Bottom Line
Connect with Laura Larson right away to discuss your alternatives and potential neighborhoods where you can find properties that meet what you're looking for if you're considering buying a property as an investment strategy to increase your wealth.